The Merger Fund (MERFX), at $4.3 billion in assets under management, is one of the biggest (and most recognizable) names in the space.
MERFX has a steady track record, with a 15-year average annual return of about 5%, with an understandably high turnover ratio (currently 240%) weighing a bit on that performance. The key to its success? For one, top-notch managers including Roy Behren and Michael Shannon — both have more than two decades of experience with investing in buyout targets, and they have been at the Merger Fund’s helm since 2007.
Merger Fund has earned a four-star rating from Morningstar. It has no sales charge, expenses are a reasonable 1.27%, and it requires a minimum investment of just $2,000.